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The news sent the value of Dogecoin soaring more than 14%. The move comes a month after Musk said Tesla would test out the digital token as a payment option.
Musk had already hit Bitcoin prices hard in the spring of 2021 with the same announcement, promising that the company would accept Bitcoins to buy its cars. However, he later changed his mind. So, some analysts believe this is Elon Musk's way of covering up the slump after the postponement of Cydertrack.
Thus, production of Tesla's much-anticipated Cybertruck will start in the first quarter of 2023, pushing back plans to start production in late 2022.
However, Tesla products, including the recently launched Cyberwhistle and Cyberquad for Kids, have been in steady demand and typically sell out within hours of being put up for sale, even when paid for in regular currencies. But some analysts are predicting a new surge in popularity for Tesla merchandise once token payment is introduced.
Due to Musk's tweets about Dogecoin, the little-known digital currency, which began as a social media joke, has become one of the most recognizable and well-growing tokens. Its price has risen by around 4,000% in 2021.
Last year, Tesla said it had bought $1.5 billion worth of Bitcoins. Musk also mentioned that he had Bitcoins and Dogecoins. However, as early as May, it was revealed that Elon had gotten rid of many cryptocurrency assets. This information confuses investors.
This may be an attempt to put competitive pressure on rivals, as traditional carmakers such as Ford Motor Co, as well as start-ups including Rivian Automotive, are set to launch their electric cars this year.
However, it is not yet clear how this trade move will be received by lawmakers, who have recently become concerned about crypto regulation.
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